The Major Coffee Brand Nestlé Plans To Buy From Starbucks

Starbucks is one of the most recognized brand names when it comes to coffee. If you find yourself craving a cup of Starbucks in the morning but don't have time to stop by a café during your morning commute, the coffee brand sells a variety of products in grocery stores so you can enjoy your Starbucks at home. The brand began selling packaged coffee grounds in 1998, reports Supermarket News, and has since expanded to offering K-Cups, bottled drinks, creamers, and more.

Nestlé is no stranger to grocery store sales. The company currently produces Nescafé, Nespresso, Blue Bottle Coffee, and even packages Starbucks Coffee At Home, per its website. The company has been producing coffee since 1938, when Nescafé was developed as a way to cope with the coffee bean surplus in Brazil. The website also states the brand shifted its focus to a "just add water" type of coffee with the onset of World War II as a way for soldiers to enjoy a hot cup of coffee with their rations. Though the brand already has a rich history pertaining to coffee, with this new acquisition, it will acquire another coffee brand to add to its repertoire.

The brand can focus on grocery sales

Nestlé, which the Wall Street Journal reports is the largest packaged food maker in the world, has acquired the Seattle's Best Coffee brand from Starbucks, adding to its line of coffee brands on grocery store shelves. Nestlé reportedly hopes to expand its packaged coffee portfolio in North America through the acquisition.

In a post from the Starbucks website, the company stated that the deal would strengthen the Global Coffee Alliance. The program was co-founded by Starbucks and Nestlé in 2018 to improve both companies' packaged goods. Nestlé previously had the rights to market, sell, and distribute Seattle's Best Coffee through this alliance but will now hold full ownership of the brand. Both companies agreed to keep the specifics of the deal private, with Nestlé purchasing the line for an undisclosed amount, as per Yahoo Finance. The deal will finalize at the end of the year, so long as it is approved by the Starbucks board of directors.